Research Purpose
The study aims to examine enterprises’ awareness of the Provincial Competitiveness Index (PCI) in Ninh Binh province, Vietnam, and to analyze the level of agreement among businesses regarding 43 component indicators of PCI. It also seeks to identify key factors influencing enterprise evaluation of the business environment and to provide policy implications for improving local governance and competitiveness.
Research Motivation
Although the PCI has become an important tool for measuring local economic governance in Vietnam, little is known about how enterprises—particularly small and private firms—perceive and engage with the index at the provincial level. This research is motivated by the need to bridge the gap between policy intentions and business community awareness, to strengthen the link between provincial development strategies and enterprise needs, and to improve communication of PCI-related information.
Main Findings
Through a survey of 235 enterprises, based on a questionnaire designed with input from local policymakers and business managers, the results indicate that overall awareness of PCI remains low, particularly among small enterprises, privately owned firms, and those operating outside the industrial and commercial sectors. However, nearly half of the surveyed businesses expressed interest in PCI, suggesting potential for improved awareness in the future. Enterprises highly value factors such as information transparency, business support policies, and fair competition, while issues such as informal costs, administrative procedures, and land access remain notable concerns. The study also shows that differences in ownership type, legal status, and business sector influence how enterprises evaluate PCI component indicators
Practical/Managerial Implications
Local authorities need to enhance communication and dissemination of PCI in a clear and accessible way, especially targeting SMEs; Strengthening the alignment between the province’s development strategy and business needs will make PCI a more effective tool for improving the investment environment; Streamlining administrative procedures, reducing informal costs, and ensuring transparent land access are critical for building business trust; Policy implementation should prioritize factors most valued by enterprises—such as transparency, support services, and fair enforcement—to enhance governance capacity and attract sustainable investment.